Dana Petroleum
Press Release
30 April 2008
DANA PETROLEUM PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
Dana Petroleum, the independent oil and gas exploration and production company focused on growth through international exploration and the development of production in the North Sea and Egypt, is pleased to report its preliminary results for 2007.
HIGHLIGHTS
Strong Growth in Oil and Gas Reserves
- Proven and probable reserves increased to 165.8 mmboe at end of 2007 (2006: 130.6 mmboe)
- Oil and gas reserve additions represent a reserves replacement ratio of 316% for the year
Record Production and Cashflow
- Delivered record oil and gas production of 30,514 boepd in 2007, up 37% (2006: 22,285 boepd)
- Production capacity increased strongly during 2007, with a year-end exit rate of over 45,000 boepd
- Currently producing from 30 oil and gas fields, in the UK, Egypt, Norway and the Netherlands
Record Financial Results
- Revenue increased by 45%, to a new record high of £311.5 million (2006: £215.3 million)
- Pre-tax profit rose 48% to £143.3 million (2006: £97.1 million)
- Earnings per share increased 50% to 72.17p (2006: 48.24p)
- Cash generated from operations up 44% to £201.8 million (2006: £139.9 million)
Major Business Development and Corporate Initiatives
- Two successful corporate acquisitions, Devon Energy’s Egyptian E&P business and independent oil company Ener Petroleum in Norway
- Significantly increased financial capability following successful issue of £141.5 million convertible bond and new $400 million debt facility
- Net debt of £71.3 million at end of 2007, equivalent to just 17% gearing
Outlook
- Exciting period ahead with rising production and extensive drilling programme
- Group production for 2008 expected to average between 40,000 and 45,000 boepd representing more than a 30% growth over 2007
- Current unhedged position yields full benefit from strong oil and gas prices
- 3 new field developments already sanctioned in 2008
- Up to 17 exploration wells scheduled in 2008 with rigs for 14 of these already secured
- Valuable new oil field discovered at West Rinnes close to Dana’s Hudson producing field
- 3 exploration wells currently drilling at East Rinnes (North Sea), West El Burullus (Nile Delta) and West Gihan (Gulf of Suez)
- Preparing for forthcoming licensing rounds in the UK, Norway and Egypt
- Planned 2008 capital investment of approximately £200 million across existing fields and licences
Chief Executive, Tom Cross commented:
“Dana delivered record production in 2007 and is on target
for significant further growth in 2008 with the full year effect
of new fields and the strategic acquisitions in Norway and Egypt.
The Group is now producing from 30 oil and gas fields, progressing
3 new developments which are due onstream from 2009, and working
on a further 21 appraisal and potential development projects.
2008 will be the most active year of exploration in Dana’s history.
A total of 17 wells are planned, focused on the UK, Norway and
Egypt.
The Company is in a very healthy financial position, with a
broad portfolio of growth opportunities and the proven ability
to deliver further commercial transactions.”
30 April 2008
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For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| David MacFarlane, Finance Director |
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| Stuart Paton, Technical & Commercial Director |
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| Nick Elwes/Paddy Blewer | College Hill Associates | 020 7457 2020 |
